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A Simulation-Based Dynamic Scheduling Method in Project Cost Estimation Process

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Simulation and Modeling Methodologies, Technologies and Applications (SIMULTECH 2016)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 676))

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Abstract

Since project price is determined before the start of a project, project cost estimation is a critical work for the EPC (Engineering-Procurement-Construction) contractor in accepting profitable projects in competitive bidding situations. The contractor should devote significant time and resources to accurate cost estimation of project orders from clients. However, it is impossible for any contractor to devote significant time and resources to all the orders because such resources are usually limited. For this reason, the contractor must dynamically decide bid or no-bid on the orders at each order arrival, and allocate the limited resources to the chosen orders. In this paper, we develop a simulation model of the project cost estimation process by reference to a generic model of dynamic scheduling for the state-dependent work. Then we devise a simulation-based method for dynamic scheduling in the project cost estimation process by using the model to maximize the contractor’s profits. The method dynamically selects orders and allocates the limited resources to them, on the basis of the contractor’s resource utilization, and the expected profit from the order. The effectiveness of our method is demonstrated through simulation experiments.

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Acknowledgements

This work was supported by JSPS KAKENHI Grant Number 16K01252.

Author information

Authors and Affiliations

  1. Faculty of Engineering, Kanagawa University, 3-27-1 Rokkakubashi, Kanagawa-ku, Yokohama, 221-8686, Japan

    Nobuaki Ishii

  2. School of Network Information, Senshu University, 2-1-1 Higashimita, Tama-ku, Kawasaki, 214-8580, Japan

    Yuichi Takano

  3. Graduate School of Decision Science and Technology, Tokyo Institute of Technology, 2-12-1 Ookayama, Meguro-ku , Tokyo, 152-8550, Japan

    Masaaki Muraki

Authors
  1. Nobuaki Ishii
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  2. Yuichi Takano
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  3. Masaaki Muraki
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Corresponding author

Correspondence to Nobuaki Ishii .

Editor information

Editors and Affiliations

  1. King Abdullah II School of Information Technology, The University of Jordan, Amman, Jordan

    Mohammad S. Obaidat

  2. School of Electrical Engineering and Computer Science, University of Ottawa, Ottawa, Ontario, Canada

    Tuncer Ören

  3. Department of Modelling and Simulation, Riga Technical University, Riga, Latvia

    Yuri Merkuryev

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Ishii, N., Takano, Y., Muraki, M. (2018). A Simulation-Based Dynamic Scheduling Method in Project Cost Estimation Process. In: Obaidat, M., Ören, T., Merkuryev, Y. (eds) Simulation and Modeling Methodologies, Technologies and Applications. SIMULTECH 2016. Advances in Intelligent Systems and Computing, vol 676. Springer, Cham. https://doi.org/10.1007/978-3-319-69832-8_15

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  • DOI: https://doi.org/10.1007/978-3-319-69832-8_15

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-69831-1

  • Online ISBN: 978-3-319-69832-8

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